Though the idea of a bank having some control over cryptocurrency might put a bad taste in certain people’s mouths, new German legislation allows the country to have a greater deal of support for the currency. While before things like off-shore methods might have been needed, now German-based funds can easily be used within the support framework of a bank.
A bank selling and holding crypto assets might be a problem for the sake of decentralization, but it does mean investors can work with a group that’s used to dealing with assets and preventing their use in fraudulent interactions such as money laundering. Which is a crime that can be a problem for a currency that allows anonymity as often a feature, not a bug.
The legislation is already in place in Germany and has been for a few days, so it’s now a waiting game to see if this is a net positive. Will legislation further legitimizing crypto across an entire country allow it to grow uninhibited, with more and more support structures coming into play for it? Or will banks holding cryptos for a fee just become riddled with the same problems normal money has that crypto seeks to escape?
